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Volkswagen Pune plant ‘might’ layoff employees in lieu of emission scandal

Volkswagen Chakan plant in Pune

Volkswagen’s infamous diesel-gate emission scandal has taken a toll on the company’s operations across the globe. Volkswagen India too hasn’t been left insulated from the brunt, as the company has warned its workers at the Pune plant about a possible job shedding in the coming months. This statement comes on the backdrop of the German automaker cutting operational costs in order to accommodate the brunt that it has suffered due to the Diesel-gate emission scandal.

Workers of the Volkswagen Chakan plant in Pune were given a letter earlier this week, which termed the current period as the time for “survival of the strongest”, and warned the employees of possible job layoffs in case the allotted targets aren’t met.

Volkswagen is currently under a huge financial crisis, as the company has agreed to buy-back or fix more than half a million VW cars in the US, which were affected under the diesel-gate scandal. This buy-back will reportedly cost Volkswagen a sum of more than $10 billion. Hence, in order to accommodate such a large brunt, the company is cutting its operational costs throughout the globe. This includes scrapping the number of operational shifts in countries like Argentina, Russia, Mexico and Brazil, thus resulting in huge job losses.

Volkswagen’s India plant situated in Chakan near Pune currently employs more than 4,000 people. With the company’s market share decreasing in the domestic industry, and exports to countries like Mexico being affected by the infamous scandal, the fate of these 4000 employs remains sealed in the jar of the future.

We wish VW to proudly come out of its current bad times!

(Source – Economic Times)